Monday, November 16, 2009

G.M. Payback Starts Early

G.M. has already started repaying its government loans.

Nick Bunkley of The New York Times reports:

G.M. said it increased its cash reserves by $3.3 billion from July 10 to Sept. 30, ending the quarter with $42.6 billion on hand. It plans to make a $1 billion payment to the United States government in December, more than five years before the loans are due, and to submit similar quarterly payments after that.

G.M.’s chief executive, Fritz Henderson, said the automaker’s performance showed “some signs of progress and some signs of stability” and a “good, strong liquidity position.”

Speaking at a news conference at G.M.’s headquarters, Mr. Henderson said the loss was “much lower than what it has been and certainly better than our plan going into bankruptcy, but nonetheless it’s a loss and you can’t be satisfied with it.”

For the entire third quarter, including the final 10 days of G.M.’s bankruptcy, the company said its revenue was $28 billion, up 21 percent from the second quarter.

Excluding taxes and one-time items like the costs related to restructuring its dealership network, G.M. said its operations lost $261 million from July 10 and Sept. 30. The loss in North America was $651 million, while international operations reported a profit of $238 million.

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